I have a client that sold their primary residence in 2020 for a loss. They sold another primary residence back in 2017 but the sale (gain) was never reported on their 2017 return. Pro Series will not accept another 2020 home sale worksheet with a prior year sale. How do I report this transaction in lieu of filing an amendment for 2017?
Any suggestions are appreciated.
Thank you!
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Was there a TAXABLE gain for the 2017 home? Or was all of the gain eligible for the $250,000/$500,000 exclusion?
If the entire gain was eligible to be excluded, there was no need to report the sale on the Federal return.
If there was a taxable gain, then 2017 should be amended to report that gain.
"They sold another primary residence back in 2017"
Were these owned consecutively or concurrently? They cannot both be primary if they existed at the same time or overlapped.
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